Preparedness Risk management strategies will help businesses stay prepared to deal with the worst. According to the HUB survey, there’s wide recognition on the importance of preparation: 67% of agribusiness respondents say their objectives are aligned with risk management and insurance strategies. However, that doesn’t mean the industry is not without challenges. As automation grows — 60% of food and beverage businesses use technology to help track and 12 — it has brought up new issues manage inventory for which businesses need to prepare. And artificial intelligence (AI) to increase efÏciency13 is rife with both opportunity and risk. Food recalls are another area that represents an ongoing double risk. Not only does it affect the bottom line, but it With automated systems that run production lines, mix also imperils a food manufacturer’s reputation. Between ingredients and assure quality control, a breakdown 2020 and 2023, the number of FDA and USDA food recalls can lead to shutdowns, tainted output and subpar rose 20%, and 2024 is likely to match or exceed the 547 products making it to consumers. In addition, much of recalls in 2023. the automation in food and beverage manufacturing runs on legacy operating systems, putting them particularly at Nearly 40% of recalls are due to allergen contamination, risk. Reducing that risk requires strict maintenance and while bacterial contamination accounts for more than 16 Although automation can reduce the risk of recalls, upgrading operating systems when necessary. 20%. it cannot remove it entirely — organizations need strong The agribusiness industry is also vulnerable to cybercrime, product oversight that include audits to minimize the risk with 167 ransomware attacks in 2023, with a similar and a food recall plan when it does happen. 14 And the industry's automation number trending for 2024. is often vulnerable to sabotage. Agribusinesses can combat cybercrime through multifactor authentication and 12. Grassi, “Food & Beverage Manufacturers and Distributors Drive endpoint detection and response. Educating employees Profits Through Technology & Automation,” June 6, 2024. about how to recognize phishing and spoofing attacks is 13. ForestNet, “Artificial Intelligence (AI) is Already at Work in the Forest Industry,” April 25, 2024. essential. 14. The Record, “Food and agriculture sector hit with more than 160 ransomware attacks last year,” April 16, 2024. Supply chains are still fragile, with potential problems 15. The Food Institute, “5 Supply Chain Concerns to Watch in Late 15 2024,” August 2, 2024. coming not only from political unrest and shipping issues but also from severe weather. Agribusinesses can take 16. TraceOne, “States Most Impacted by Food Recalls in Recent advantage of CAT modeling to develop plans in case their Years,” July 29, 2024. supply chains are interrupted. 6